Question

Define E banking and advantages and disadvantages​

Answer 1

Answer:

Online banking, also known as internet banking or web banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution's website.

Advantages of E-Banking : –

The main advantages of electronic banking are: –

• The cost of operation per unit of services is lower for banks.
• Offers convenience to customers since they are not required to go to the bank’s facilities.
• There is a very low incidence of errors.
• The customer can obtain funds at any time from ATMs.
• Credit cards and debit cards allow customers to get discounts at points of sale.
• The customer can easily transfer the funds from one place to another place electronica

Disadvantages

• Savings and credit cooperatives, and in particular small local cooperatives, strive to match the level of convenience (ATMs and branches) that many banks offer their customers, although many are part of shared networks that increase channels available to its members
• Some Credit Units are limited in their product offerings
• One must qualify for membership
• One must pay a membership fee to join

Answer 2

(i) e-banking provides 24 hours, 365 days a year services to the customers of the bank. (ii) It lowers the transaction cost. (iii) It inculcates a sense of financial discipline and promotes transparency. (iv) Customers can make the transactions from office, home or while travelling via cellular phones.